The Climate Spectator has a post on another proposed algae production plant in Australia - Team Biofuel.

Australia’s Algae.Tec says it has signed a deal to build its proposed algae harvesting and production facility at the Nowra ethanol plant of Manildra Group, the largest ethanol producer in Australia. Algae.Tec executive chairman Roger Stroud said the algae photo-reactors would be sited next to the main facility and take a carbon dioxide feed from the main ethanol fermenters.

“Algae.Tec is one of only a few advanced biofuels companies with a technology designed to grow algae on an industrial scale," says Stroud. "The photo-reactors are currently being assembled at the company’s USA headquarters, in Atlanta, Georgia." Algae.Tec says its enclosed module systems occupy less than one tenth the land footprint of pond growth options.

Capturing CO2 from a fossil fuel power station to make animal feed and biofuel for transport is of negligible environmental value. The carbon that was underground still ends up in the air. The only benefit is that it gets used for energy twice over. At best it halves the emissions intensity, but then there's the energy cost of the process to take into account.

Economically it might work - by dint of rorting the Clean Energy Act. The original emitter gets to avoid buying permits, while the cattlecake and biofuel products are exempted from needing them!